PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1570935
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1570935
The Global Express and Small Parcel Market was valued at USD 397.2 billion in 2023 and is projected to grow at a CAGR of over 5% from 2024 to 2032. The Asia Pacific region has experienced a rising demand for express and small parcel delivery services, fueled by the rapid growth of online shopping. Leading market players are investing in sophisticated last-mile delivery solutions and logistics networks to cater to the region's diverse requirements. The increasing impact of social media and mobile commerce is contributing to higher volumes of parcels, making express delivery services essential. Additionally, innovations in logistics technology, including automated sorting systems, real-time tracking, and advanced route optimization, are improving efficiency and delivery times, further driving market expansion.
The overall express and small parcel industry is classified based on the service, delivery mode, end-use, and region.
The market segments delivery modes into air, road, and sea. In 2023, road delivery dominated with a 56% market share due to its flexibility, broad reach, and cost-effectiveness. Companies like FedEx and UPS heavily rely on their fleet of extensive delivery trucks for crucial last-mile deliveries. For instance, in February 2023, UPS updated its On-Road Integrated Optimization and Navigation (ORION) system, enhancing road delivery efficiency by reducing fuel consumption and boosting delivery speed.
End-use categories in the market include e-commerce, retail, healthcare, and consumer goods. In 2023, e-commerce led with a 42% market share, driven by rapid growth and increasing consumer demand for online shopping. E-commerce entities rely on efficient parcel delivery to meet swift and precise shipping demands. The rise of online marketplaces and direct-to-consumer models intensifies the need for robust express delivery networks. For instance, in June 2023, Amazon introduced the "Amazon Hub Delivery" program, incentivizing small business owners to manage the "last mile" delivery directly to customers.
In 2023, North America led the global express and small parcel market with a 36% share, attributed to its advanced logistics infrastructure, burgeoning e-commerce landscape, and strong consumer demand for prompt deliveries. Major e-commerce players like Amazon and Walmart generate substantial parcel volumes, necessitating sophisticated delivery solutions. Established express delivery giants like FedEx and UPS bolster operational capabilities and market reach, cementing North America's leading position in the market.